The Importance of Safe and Ethical Working Conditions for International Business Operations
When companies go overseas, they often involve different kinds of working conditions in their units of business and operations. The company has a huge responsibility of keeping in mind factors like safe and healthy working conditions, both domestically and internationally. When the working conditions compromise the business context, not only do the company prospects get affected but also the political, economic, socio-cultural, legal and environmental settings get highly disturbed. The companies, in most of the cases, get away with work related issues. They try to avoid the accountability for whatever that happens in the places of work, such as supply chains factories. Global supply chains provide functions for companies regularly with rules and regulations. In today’s context, many organisations are trying to maintain corporate responsibility by initiating codes of conduct, proper working conditions, ethics and principles and legalities of the country of the workplace. (Zajda, and Ozdowski, 2017)
In developing world, multinational companies look for opportunities and needs for manufacture. They are expected to maintain a balance between ethical sourcing and business objectives. Corporate programmes are expected to focus on reducing the worker related issues and tensions.
For this assignment, the case study of Bala Sport, a Fairtrade Sports balls company, will be focused on. The products, the balls, carry UK’s ethical certification called the Fairtrade Mark. The company is a co-ordinated agency that concentrates on creating a worldwide access and utilisation of the Fair Trade sports balls. One of the most focal points of the company’s agenda is to create awareness about the role of the balls in the life of workers in Sialkot, Pakistan, where hand stitched balls are made. When the balls are sold, the company aims to ensure that fair amount of wages is paid to the workers who stitch the balls, and benefit form fair working conditions as well. (Baxi 2017) The revenues earned from the sales are partly used for social, economic and environment related developmental initiatives. As part of corporate social responsibility, the Fairtrade Premium is used for project funding for various campaigns and services for the developing world, especially for the factory workers in Sialkot.
Should a company like Bala Sport consider the human rights of the workers making footballs? Explain how two rights from the UN Declaration of Human Rights are relevant to Bala Sport.
The United Nations Programme for Development (UNDP) recognises the basic human rights as the essential component of development of economy, society and nations. The UN’s Guiding Principles on Business and Human Rights has established the importance of companies like the Bala Sports considering and applying the chief elements of human rights to the business context. All businesses play vital roles in promoting economic growth and positive social and environmental progress. (Sullivan, and Robinson, 2017) Human rights have lots of implications for organisations. People, whether workers or managers, whether staff member or odd job person, are all in the need of basic rights like equality and dignity. Indiscrimination on grounds of positions, work, gender, race, culture leads to serious damage in terms of mental, physical, emotional and intellectual state. International human rights legalities are relevant for business beyond the borders and in compliance with local ethics and codes of conduct as well the international laws.
Corporate Responsibility and Code of Conduct for International Business
All enterprises are required to positively impact their workers and the working conditions. Not only are the customers are to be satisfied buy also the happiness and the productivity of the employees should be a top priority. In every culture, particular circumstances and socio-economic factors influence the extent and the nature of the human rights that need to be maintained in the relevant working environment. From the perspective of the Bala, several guiding principles can be followed to apply the human rights essentials to the workplace.
Of these, two Rights are significant due to the findings of the study on the working conditions of the factory workers. Firstly, everyone has the right to live with liberty, life and security. Most of the workers are found to be working in conditions that are detrimental to health, safety, security and wellbeing. Secondly, all are equal before the law. Local, national and international laws all bind companies legally to respect the human rights principles and basic codes of conduct, and not disrespect and discriminate against any worker on any ground. (Malhotra, 2018)
Human rights have to be followed by all organisations like Bala. Respecting workers and employees as humans, at all levels, is critically required in all settings.
Using one of the two human rights you identified in Question 1 and one ethical theory from Readings 49 to 52, explain why the workers making footballs have that particular human right.
The United Nations has made it a mandatory human right to give everyone access to a healthy, safe and secure workplace conditions. The right to occupational health is integral to every work environment. Companies like Bala should maintain the basic decorum of keeping the factory conditions worker friendly. Countries are obliged to pass and enforce laws on workplace safety constantly. Companies should as well prioritise the basic human rights as well. (Koenig, 2017)
The World Health Organisation has stated that attaining the highest standard of health is the fundamental right of every worker. Health and safety as a human right creates legal implications and obligations for companies to create policies and rules. These include providing the workers facilities and conveniences of well ventilated and spacious workplaces with the exit and entrance routes clear and accessible. All emergency supplies are kept ready and so are equipment for handling contingencies and accidents like fire. Regular maintenance of the workplace and its arrangements is also necessary. Safety gear is to be used during critically dangerous operations. Companies need to assess and evaluate risks and keep incidents documented and in records so that every progress can be tracked and every risk can be tackled.
The workers at Bala are mostly working in situations where they are not properly safe and secure. Manufacturing and producing balls can lead to factory based hazards. Most rooms are not properly ventilated and lit up. (McCann, and McCloskey, 2015) This can create health hazards like weak eyesight, breathing problems and several other issues. Bala now needs to upgrade the working conditions and improve the work lives of their workers. Sustainable development of the workers and their environment is extremely important for the effective productivity and progressive growth of the economy. Not only workers at Bala but every staff member, worker, employee of all organisations have the right to health and safety in all circumstances. The right to health must be applied without any discrimination on any ground. Companies are obligated to their workers to keep them safe and healthy while they work.
The Case Study of Bala Sport: A Fairtrade Sports Balls Company
Using information from the case and concepts from Reading 56, how and to what extent do you think globalisation is affecting Bala Sport?
The international and national business sector has been greatly influenced by globalisation. Bala Sport is basically a manufacturing company, and the concept of globalisation has brought about three fold impact on all manufacturing companies, including Bala. (Potrafke, 2015) Firstly, free trade agreements are initiated. These create opportunities of equal and openly accessible markets for the consumers of the relevant countries. The Bala’s trade and commercial activities influence and affect both Pakistan and the United Kingdom. The concept of free trade allows companies to set up base in other countries provided they comply with the laws of the land. Bala gets benefits in form of cheap labour while the workers at the Silakot factories get benefits in form of employment and incentives emerging from corporate social responsibility campaigns. This is one of the positive effects of globalisation. (O’Byrne, , 2014)
Secondly, international treaties have set up several pointers about the use of environmental resources. Globalisation has influenced companies to understand and be aware about the impact of manufacturing processes on the environment. Bala has to make sure that all its equipment is up to date and ecologically viable. (Pedersen, and Kinley, 2016) Procedures to recycle products and to responsibly dispose of materials have to be adopted. Globalisation ensures that international companies comply with the environmental policies of the relevant countries.
Thirdly, globalisation creates a positive impact when international companies responsibly source their raw materials. Supply chains of multinational companies extend beyond borders of countries. The manufacturers have to prioritise safe and certified supplying of materials. To make sure about effects of globalisation. Bala can implement internal testing and verification processes for raw materials. Such practices ensure the standard of keeping raw materials updated to the required specifications. (Giuliani 2016.)
Globalisation, if properly maximised and utilised, has positive results in form of investments, creation of jobs and skill sets, bringing of greater revenues and foreign currencies, cross cultural diversity, global resourcefulness and awareness and international initiatives.
Using information from the case and concepts from Readings 58 and 61, what do you think are the advantages and disadvantages of Bala Sport sourcing its footballs from suppliers in Sialkot?
Companies rely on suppliers and supply chains for sourcing in order to survive in the highly competitive market. Companies like Bala need efficiency in management of complex issues like minimisation of costs and getting effectiveness in sourcing solutions. Strategically and financially, sourcing from suppliers have both disadvantages and advantages.
The following advantages from the perspectives of Bala Sports are listed below-
- Cheap manpower- outsourcing by international companies have an important implication for becoming globalised. (Cronstedt, and Thompson, 2016 ) Companies can seek profits on the basis of their overseas operations and labour intensive processes which cost considerably less. The lower the cost of production the better the price of products and services.
- Scalability- sourcing is a reasonable way to assemble teams of experts together to test the required solutions of the project. Sourcing of local resources in form of professionals and experts can be utilised regularly.
- Access to raw materials- companies utilise raw materials which are scarce in their home countries. Raw material sourcing locally can reduce the supply risks of companies. It can result in cheaper prices.
- Access to skill sets- recruiting local talent with the knowledge and information about the sources, resources and raw materials goes a long way for companies. Using such skill sets can create further job opportunities as well as better productivity for the business operations. (Hervey, and McHale, 2015)
- Increase in constructive productivity- the workers often make up for the time zone variations and differences, creating more productivity and constructive progress for companies. Sourcing creates intervention in form of more workers working in shifts overseas while business operations of other countries stop. The company keeps running for twenty four hours in this manner.
The disadvantages from the perspective of Bala are as follows-
- Quality issues- sourcing international companies often compromise the quality of their products and services by cutting down the cost of production with the aim of gaining more profits. (Andriof, and McIntosh, 2017)
- Loss of unique identity- often products and services become outdated and obsolete. In other words, while they can be of some use to most countries, they are no longer applicable to all the countries on a global scale.
- Job loss- at times global sourcing is criticised for often reducing jobs by moving most of the business activities away to other locations.
Conclusion
The act of creating initiatives of application of human rights to the concept of globalisation is fast evolving in today’s context. International scenario as well as national policies have made it a top priority to bring about changes. (Ssenyonjo, 2017) It is significant if the positive impact of globalisation creates more solid foundations for basic human rights. Human rights should not be adversely affected by the globalised companies and their operations, objectives and profits. No human right should be compromised in many manner, even in the name of globalisation.
Globalisation has increased tough competition on a worldwide level. For gaining profits and increasing maximum advantages, companies often forego basic human rights principle. This should be avoided as much as possible. The right to enjoy globalisation is open to all workers and employees as well. (Methven and Dhanarajan, 2016) Companies should not deprive their workers the rights to dignity, esteem, basic utilities, health and safety and other basic rights. Today all labour, economic, cultural, social and political rights have been passed and enforced by governments so that companies legally comply and allow every individual to enjoy basic rights and globalisation.
Developing countries and under developed countries provide cheap manpower and raw materials and other resources to international companies. However this should not be taken advantage of by the organisations. (Hajjar 2017) In the age of globalisation, the human rights concept has involved constant struggles, debates and challenges. It is a difficult and long lasting process and despite positive efforts and changes still needs to be better evolved.
References
Andriof, J. and McIntosh, M. eds., 2017. Perspectives on corporate citizenship. Routledge.
Baxi, U., 2017. Voices of suffering, fragmented universality, and the future of human rights. In Human Rights (pp. 159-214). Routledge.
Cronstedt, C. and Thompson, R.C., 2016. A proposal for an international arbitration tribunal on business and human rights. HARV. INT. LJ, 57, p.66.
Giuliani, E., 2016. Human rights and corporate social responsibility in developing countries’ industrial clusters. Journal of Business Ethics, 133(1), pp.39-54.
Hajjar Leib, L., 2017. Human Rights and the Environment: Philosophical, Theoretical and Legal Perspectives. Brill.
Hervey, T.K. and McHale, J.V., 2015. European Union health law. Cambridge university press.
Koenig, M. ed., 2017. Democracy and human rights in multicultural societies. Routledge.
Malhotra, R., 2018. Economic policy and human rights: Is globalisation a meeting ground?. In Economic Theory and Policy amidst Global Discontent (pp. 116-142). Routledge India.
McCann, G. and McCloskey, S., 2015. From the Local to the Global. University of Chicago Press.
Methven O’Brien, C. and Dhanarajan, S., 2016. The corporate responsibility to respect human rights: a status review. Accounting, Auditing & Accountability Journal, 29(4), pp.542-567.
O’Byrne, D., 2014. Human rights: an introduction. Routledge.
Pedersen, M.B. and Kinley, D. eds., 2016. Principled Engagement: Negotiating Human Rights in Repressive States. Routledge.
Potrafke, N., 2015. The evidence on globalisation. The World Economy, 38(3), pp.509-552.
Ssenyonjo, M., 2017. The applicability of international human rights law to non-state actors: What relevance to economic, social and cultural rights?. In Economic, Social and Cultural Rights (pp. 77-112). Routledge.
Sullivan, R. and Robinson, M. eds., 2017. Business and human rights: dilemmas and solutions. Routledge.
Zajda, J. and Ozdowski, S., 2017. Globalisation and research in human rights education. Globalisation, Human Rights Education and Reforms, pp.265-272.
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